Mitsubishi cuts copper concentrate processing as TC/RCs squeeze margins

Mitsubishi Materials

Mitsubishi cuts copper concentrate processing to protect profitability at its Onahama smelter. Mitsubishi cuts copper concentrate processing after TC/RCs fall to historical lows. Mitsubishi cuts copper concentrate processing while raising recycled feed to stabilize returns.

Onahama output under review after autumn maintenance

Mitsubishi plans a partial suspension at Onahama following October–November maintenance. The site can produce 25,000 t/month of copper cathode. It also produces 550,000 t/yr of sulphuric acid. However, weaker treatment and refining charges have eroded smelter margins this year. The company will confirm revised cathode guidance once plans finalize.

Recyclables rise as TC/RCs pressure smelters

Mitsubishi will lift copper scrap usage to offset lower concentrate economics. The strategy reduces exposure to volatile TC/RCs and strengthens circular supply chains. Meanwhile, JX Advanced Metals signaled potential curbs at Pan Pacific Copper. Pan Pacific Copper has 650,000 t/yr refined capacity across Japan. JX also increased recycled inputs as concentrate processing profitability fell.

Global market dynamics complicate Japan’s response. Chinese smelters kept output stable despite low TC/RCs. Strong by-product credits and firm domestic demand supported operations. China’s refined copper production rose 9.5pc year on year in January–June. As a result, Japanese smelters face tougher competition and thinner margins.

The Metalnomist Commentary

Japan’s pivot to scrap underscores a structural shift toward circular copper supply. Watch how higher scrap ratios, by-product pricing, and sulfuric acid demand reshape smelter economics. If TC/RCs stay weak, more Asian capacity may favor recycling over concentrate.